The Justice Department has initiated legal action to permanently prohibit Stacy Thomas, a tax preparer from Orland Park, Illinois, from preparing federal tax returns. The complaint was filed in a federal court in Chicago and targets Thomas and her businesses: Rapid Tax Refunds LLC, Rapid Tax Refund Profs LLC, and Rapid Refunds Income Tax Service Inc.
The allegations against Thomas include the preparation and filing of false federal tax returns that misrepresent her clients' tax liabilities. These misrepresentations involve claiming non-existent residential energy credits, business expenses on Schedule C, and charitable deductions. According to the complaint, IRS interviews with customers revealed that they had not informed Thomas of such expenses or contributions; instead, she reported these items without their consent.
The IRS estimates that Thomas's actions have resulted in nearly $13 million in lost tax revenue for the United States. This case is part of the Justice Department’s broader efforts to combat return preparer fraud, which is listed among the IRS’ "Dirty Dozen Tax Scams." The IRS advises taxpayers to be cautious when selecting a tax preparer and provides resources on its website for making informed choices. It also warns against "ghost preparers" who engage in fraudulent activities.
Over the past ten years, the Justice Department’s Tax Division has secured injunctions against numerous unethical tax preparers. Details about these cases are available on the Justice Department’s website. An alphabetical list of individuals prohibited from preparing returns and promoting tax schemes can also be found online. Concerns about violations of such injunctions can be reported to the Tax Division.